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CEIOPS reports on insurance linked securities

CEIOPS, the Committee of European Insurance and Occupational Pensions Supervisors, has published a report on securitisation in the insurance sector.

The report:

describes the origins and current position of insurance linked securities (ILS)

gives an overview of the basic ILS structure, focusing in particular on cat bonds and life securitisations

considers the size and structure of the ILS market, how the market developed and the investor landscape associated with it, and

considers the regulatory treatment of ILS and the implications that the implementation of Solvency II may have for the ILS market.

The report contains one or two misconceptions (for example, a belief that catastrophe risk is long tail) but on the whole is a useful introduction to the world of ILS, although (re)insurers, brokers, structurers and lawyers already working with ILS are unlikely to learn anything of value.